Trade vs. Investment

Trade and investments are two words that are often thrown around in the market and are sometimes used simultaneously even though they are very different. Yes, these are both ways in which the buy/seller is trying to make money but the steps in which the buyer/seller is trying to make a profit is completely different. In an investment the buyer is going to try to make a profit over a long period of time. In this method the buyer can use interest, dividends, and stock splits to help increase their earning value. Trading is used to get fast money. You buy stocks when they are relatively low and sell them when the value increases for higher. Catalysts are events that occur that can change the value of your stock for better or for worse. You want to be aware of these catalysts so you can use them to your advantage when dealing with stocks. Short selling is when you buy a large number of stocks from a company and then sell them individually to other buyers in the market.